Prices for buying real estate in Belgium and yields vary significantly between regions: while a three-room apartment in Brussels costs €550,000 with a yield of 5.15%, a similar property in Charleroi costs €211,000 with a yield of 5.63%. These differences provide opportunities for investors with different budgets and investment strategies.

We have analysed data on property prices, rental rates and yields in 8 key cities in Belgium. The analysis is based on current market data.

Contents:

  1. Segmentation of the Belgian Market by Price
    1. Premium Segment
    2. Middle segment
    3. Economy segment
  2. Analysis of Rental Rates in Major Cities in Belgium
  3. Rental Yields in Belgian Cities

Segmentation of the Belgian Market by Price

The Belgian property market is an interesting example of how housing prices are differentiated depending on the region. The same can be said about rental yields. Let’s look at the key indicators of the rental housing market in the 8 largest cities of the country, including the capital and the main regional centers.

Premium Segment

The most expensive housing in Belgium is sold in Brussels, where prices are significantly higher than in other cities. A three-room apartment in the capital is valued at an average of 550,000 euros, more than twice as much as in Charleroi (211,000 euros). Even small one-room apartments in Brussels are traded for an average of 243,000 euros.

Brussels

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

243,000

1165

5.75%

2-room

367,000

1745

5.71%

3-room

550,000

2360

5.15%

Brussels-Capital Region (excluding Brussels itself)

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

227,000

1065

5.63%

2-room

307,000

1590

6.21%

3-room

419,000

2290

6.56%

Middle segment

The second price category includes cities such as Bruges, Ghent and Antwerp. In these cities, the cost of a three-room apartment varies from 400,000 to 450,000 euros, and a one-room apartment from 223,000 to 235,000 euros. It is noteworthy that these cities are located in Flanders, a more economically developed region of the country.

Bruges

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

235,000

815

4.16%

2-room

333,000

995

3.59%

3-room

450,000

1145

3.05%

Antwerp

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

223,000

955

5.14%

2-room

298,000

1155

4.65%

3-room

400,000

1555

4.67%

Ghent

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

225,000

845

4.51%

2-room

316,000

1145

4.35%

3-room

415,000

1340

3.87%

Economy segment

The most affordable property prices are in the Walloon cities of Charleroi, Liege and Namur. Here, a one-room apartment can be purchased for 128,000–164,000 euros, and a three-room apartment for 211,000–314,000 euros.

Charleroi

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

128,000

610

5.72%

2-room

156,000

755

5.81%

3-room

211,000

990

5.63%

Liege

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

162,000

705

5.22%

2-room

231,000

925

4.81%

3-room

310,000

1000

3.87%

Namur

Apartment

Average cost of buying an apartment, EUR

Average rent, EUR per month

Average Gross Rental Income

1-room

164,000

705

5.16%

2-room

251,000

870

4.16%

3-room

314,000

1120

4.28%

Analysis of Rental Rates in Major Cities in Belgium

The distribution of rental rates generally correlates with property values, but there are some interesting features:

  • In Brussels we observe the highest rental rates: from 1165 euros for a one-room apartment to 2360 euros for a three-room apartment.
  • In the Brussels Capital Region rental rates are comparable to those in the capital, especially in the three-room apartment segment (2,290 euros).
  • In Antwerp and Ghent, despite the high cost of real estate, rental rates are noticeably lower than in the capital: about 1,500 euros for a three-room apartment.
  • Lowest rental rates recorded in Charleroi: from 610 euros for a one-room apartment to 990 euros for a three-room apartment.

Rental Yields in Belgian Cities

The most interesting conclusions can be drawn from the analysis of profitability indicators.

Maximum profitability. The Brussels-Capital Region (excluding Brussels itself) demonstrates high yields, especially in the two- and three-room apartment segment (6.21% and 6.56%, respectively). High yields are also observed in Charleroi, where the average for all types of apartments exceeds 5.6%.

Brussels, despite high prices and rental rates, shows moderate yields in the range of 5.15-5.75%. Similar figures are shown by Liege and Namur.

Least attractive in terms of profitability are investments in real estate in Bruges, where rates vary from 3.05% to 4.16%. Real estate in Ghent also shows relatively low returns (3.87-4.51%).

Our analysis points to the heterogeneity of the Belgian rental housing market, which creates opportunities for developing different investment strategies depending on the investor’s objectives and capabilities.